Here’s how it works:
Invest Rs 50,000 in equity Mutual Funds.
Hold the investment for more than a year.
When you redeem, you receive Rs 1,50,000, resulting in a profit of Rs 1,00,000.
The key benefit: The profit of Rs 1,00,000 is entirely tax-free. According to the rule, if you hold equity Mutual Funds for over a year, you can redeem them annually without paying taxes on profits up to Rs 1,00,000.
To make the most of this, remember to reinvest the redeemed amount immediately. This ensures you save on taxes and continue progressing toward your financial goals.
